POLICY:

Purchasing Services and Accounts Payable will immediately investigate any bankruptcy or creditors notices for possible claims against the named bankruptee.

PROCEDURES:

1. When a bankruptcy notice/notice of creditors meeting is received and date stamped in by reception desk staff, it should be immediately given to the Program Assistant to the Director.

Chapter 7 bankruptcy - Is liquidation of assets for businesses and individuals.
Chapter 11 bankruptcy - Is reorganization for businesses.
Chapter 13 bankruptcy - Is reorganization for individuals.

2. The Program Assistant to the Director will check the purchasing system vendor file for a vendor number and will send an e-mail message to the: Agent Program Supervisors, Director of Purchasing Services, Accounts Payable Supervisor and Vendor Relations Supervisor noting the results of the search. The message will indicate the vendor and/or individual named in the bankruptcy notice.

2.1 The Agent Program Supervisors will review the electronic purchasing system for any cash with orders or open orders to the vendor/individual where the order may not have been received.

2.2 The Program Assistant to the Director will check for pending requisitions suggesting the named vendor, or pending low dollar requisitions, and note on vendor file that the vendor is in Chapter 11 (reorganization) status or Chapter 7 (bankruptcy) status. If the vendor is in Chapter 7 bankruptcy status the Program Assistant to the Director will inactivate the vendor and inform the appropriate agent staff. Purchasing Agent will contact user department to advise of bankruptcy status and determine next step.

2.3 The Accounts Payable Supervisor will research for any unused credits in VPAM or Vendor Relations, any requests for credits in Payback backlog, and if bankrupt is a person, will check with Pre-Audit Supervisor and Cash Management to see if are O/S advances.

3. The Agent Program Supervisors will report their findings to the Program Assistant to the Director within 5 working days.

4. The Program Assistant to the Director will compile responses received, along with the original bankruptcy notice, and send to the Vendor Relations Supervisor, Rm. 302 Peterson Bldg.

5. The Vendor Relations Supervisor will send a memo stating any credits found for the involved vendor to UW Systems Office of General Counsel, 1738 Van Hise Hall, and copy the Director of Purchasing, Rm. 202B Peterson.

6. All bankruptcy papers received after the initial notice of bankruptcy, shall be forwarded directly to the UW Systems Office of General Counsel by the Assistant to the Director.

DELEGATED AGENT PROCEDURE: Delegated purchasing agents shall immediately submit bankruptcy or creditor's notices to the Purchasing Services Program Assistant to the Director.